Jeff Huijian: Thank you for your question. With Mr. Xin joining us as our Chairman, our collaboration with JD.com has become even closer, and I’ll go over that in more details. In terms of the business result, during the quarter, we further deepened our collaboration with JD.com The GMV off-shop now increased by more than 160% year-over-year. In terms of the progress of the two major entry points of Shop Now, on the search front, we upgraded our supply development tool to accurately match the incremental merchant and product supplies with city-specific user demand at JD.com. With the refined tool, Shop Now’s exposure rate among search results at JD.com in pilot categories more than doubled. And in the fourth quarter, we will continue to optimize the granularity of demand analysis down to the grid level so as to further improve our search exposure rate.
In terms of the Nearby or Fujin tab, we also made significant progress. First, on the technology front, we made an upgrade to make it available to users who are not turning on the real-time locations which brings incremental exposure. Second, we have fully rolled out the display name upgrade of the Nearby tab, replacing the original Nearby with relevant city names which further improved the click-through rate. In addition, we continued to enhance our user operation capability within the Nearby tab, resulting in a sequential improvement in conversion rate of more than 1 percentage point. Now these 3 measures all led to the strong growth of GMV generated from the Nearby tab. And in terms of category performance, while we maintained improvement, the supermarket category maintained solid growth during the quarter.
And boosted by the launch of new iPhones, the consumer electronics categories also performed well during the quarter. In addition, we made further progress in new categories such as apparel and recorded triple-digit growth in GMV. In terms of the category mix, in the third quarter, supermarkets accounted for 55% of JDDJ’s GMV, while nonsupermarket categories contributed 45%. And specifically, GMV from the electronics or 3C category was about 35% of the total.
Operator: Your next question comes from Thomas Chong with Jefferies.
Thomas Chong:
Jeff Huijian:
Caroline Dong: Thank you, Thomas. So I will take the first and third question, and Beck will help answer the second question. So about the industry. We think a big change next year, we’ll be on the pandemic front. In the long run, we remain very confident and optimistic about the future of on-demand retail. The penetration rate is still low at only single digit now. And the pandemic will help educate our consumers and boost consumer demand for on-demand shopping.
Jeff Huijian:
Caroline Dong: And in terms of the competitive landscape, we have not observed aggressive investment in subsidies in the current macro environment. I think everyone is being cautious about subsidies, whether it’s on the part of new entrants in the business, for example, short-form video platforms, or on the part of our existing peers, such as Meituan. So the competitive environment is not very intense on the consumer incentive side.
Beck Chen: Okay. Yes. So I’ll answer the second question from Thomas. So the answer — the short answer is yes. So the advertising and marketing revenues is very important for us to further grow our direct margin. Just like Jeff mentioned in the prepared remarks, our overall direct margin of JDDJ platform is growing from 0.4% last quarter to 1% this quarter. So definitely, the marketing orders and the take rate increase contribute to the growth of the direct margin, and we expect that for the fourth quarter and also for the next year and the overall marketing revenues still will be growing faster and will contribute to the direct margin and the bottom line improvement a lot. And also about the third question you mentioned. So generally, right now, actually, our — Dada Now, the logistics arm of our platform, is starting to cooperate with those leading short-form video platform.
So — which is also good because we are not a food delivery platform, and we are very happy to fulfill all those orders from those short-form video platforms orders. Thank you.
Operator: Your next question comes from Alicia Yap with Citigroup.
